Young oak tree with five leaves on horizontal line representing The young nation with the 5 old duchchies Swabia, Franconia, Saxony, Thuringia and Bavaria

Reverse Designer:

Frankfurt am Main

1950-2001 - Deutsche Mark - 1 Pfennig Coin

The Pfennig (plural Pfennige), is an old German coin or note, which existed from the 9th century until the introduction of the euro in 2002.

The first German deutschemark coins were issued by the Bank deutscher Länder in 1948 and 1949. From 1950, the inscription Bundesrepublik Deutschland (Federal Republic of Germany) appeared on the coins.

From 1 January 2002, euro banknotes and coins are legal tender in all EU member states participating in monetary union. This has nullified the legal tender status of all payment media denominated in Deutsche Mark. The Bank has called in for exchange all DM coins (which have been withdrawn from circulation) - with the exception of the 2 DM coin first issue.

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Currency reform of June 1948

The Deutsche Mark was introduced on Sunday, June 20, 1948 by Ludwig Erhard. The old Reichsmark and Rentenmark were exchanged for the new currency at a rate of DM 1 = RM 1 for the essential currency such as wages, payment of rents etc., and DM 1 = RM 10 for the remainder in private non-bank credit balances, with half frozen. Large amounts were exchanged for RM 10 to 65 Pfennig. In addition, each person received a per capita allowance of DM 60 in two parts, the first being DM 40 and the second DM 20.

A few weeks later Erhard, acting against orders, issued an edict abolishing many economic controls which had been originally implemented by the Nazis, and which the Allies had not removed. He did this, as he often confessed, on Sunday because the offices of the American, British, and French occupation authorities were closed that day. He was sure that if he had done it when they were open, they would have countermanded the order.

The introduction of the new currency was intended to protect western Germany from a second wave of hyperinflation and to stop the rampant barter and black market trade (where American cigarettes acted as currency). Although the new currency was initially only distributed in the three western occupation zones outside Berlin, the move angered the Soviet authorities, who regarded it as a threat. The Soviets promptly cut off all road, rail and canal links between the three western zones and West Berlin, starting the Berlin Blockade. In response, the U.S. and Britain launched an airlift of food and coal and distributed the new currency in West Berlin as well.